Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate but affiliated companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

First Solar, Belectric in JV

You have chosen to follow this author. You will receive an email notification when this author publishes a new article. Click submit to continue.

You are alredy following the Author

The Author could not be added at this time, please try again later. If problem persists, please contact Zacks Customer support.

Please Login

First Solar Inc. (FSLR - Analyst Report) has entered into a joint venture (“JV”) agreement with Belectric Holding GmbH for the development of solar energy projects on three continents. The venture will be based in Germany and is subject to approval from governmental merger control authorities.

The JV – PV Projects GmbH & Co KG – aims to develop certain chosen photovoltaic (PV) power projects. These projects can be independently acquired or developed by either of the two companies in Europe or North Africa, and with a with a capacity limit of 20 megawatts (MW) in the U.S.

The agreement calls for First Solar to supply its advanced thin-film modules, preferred components such as the First Solar Tracker and other services while Belectric will provide its Balance of Systems (“BoS”) and a series of service capabilities.

This First Solar-Belectric venture brings together the world's leading PV engineering, procurement and construction (EPC) provider and the most prevalent vertically integrated manufacturer or project developer in the PV industry. These two companies have long been working together and recently completed the 128 MW Templin PV plant in Germany.

The current venture will include Belectric's existing 280 MW pipeline in the U.S. as well as other project prospects. The JV is non-exclusive enabling both parties to independently pursue the development and construction of other PV projects.

Though First Solar’s solar cells convert sunlight to electricity less efficiently than traditional silicon PV modules, its thin film PV cells have an advantage in producing electricity even in lower light. This ability to produce electricity under a wide range of light conditions makes these cells attractive for utility companies that require stable large-scale, utility-sized renewable energy production.

In order to counter the weak economic scenario, First Solar is now focused on utility-scale electricity power projects. In August, First Solar and General Electric (GE - Analyst Report) had entered into a technology partnership agreement. Per the deal, First Solar will acquire indigenous technology from General Electric to make advanced thin-film solar panels to counter stiff competition from cheap alternatives available in the market. As a part of the transaction, General Electric will receive 1.75 million shares of First Solar, which it will retain for three years.

Again, under a 10-year power purchase agreement, the company recently announced that it will sell the electricity generated from the Lost Hills photovoltaic power plant to the City of Roseville, Calif., once the plant comes online. First Solar will begin the construction of this power plant in Kern County, Calif. in early 2014.

The company seems to be executing its strategy well by diversifying globally with a focus on rising bookings, and improving its costs. However, our apprehensions remain due to the industry-wide oversupply of solar products, its weak second quarter results and rising competition in the market.

Top Zacks Features

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

Zacks Research is Reported On:

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S&P 500 with an average gain of +26% per year. These returns cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.

Visit performance for information about the performance numbers displayed above.